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FedEx adding 90,000 workers to handle peak surge

Seasonal hiring points to another big peak season

Cost pressures compress FedEx q1 2022 earnings (Photo: Jim Allen/FreightWaves)

FedEx Corp. said Thursday it would hire 90,000 workers “ahead of busy peak season.” 

The company will host in-person National Hiring Day events in Memphis, Tennessee, Indianapolis, Dallas and Atlanta next Thursday. FedEx (NYSE: FDX) will look to add package handlers, managers, technicians, forklift drivers, couriers and customs trade coordinators through virtual events as well.

“These positions are critical to the company’s success in meeting rising e-commerce demands from retailers and consumers,” the press release said.

The plan includes temporary bonus structures and pay bumps in certain areas.

“We offer team members the chance to grow and reach their full potential, thanks to excellent training, education assistance, career development programs and a strong ‘promote from within’ culture,” said Judy Edge, corporate VP of human resources.

FedEx (NYSE: FDX) said it’s adding new hubs and sorting centers as well as making improvements in package handling and delivery capabilities to keep up with demand. “The company is also doubling down on the commitment to seven-day residential delivery to get packages where they need to be every day of the week,” the release stated.

FedEx also plans to fill 500 positions in IT and data science.

The company hired 70,000 workers for the 2020 holiday season.

Hiring sprees across the industry

Many transportation providers are bolstering headcount ahead of what is expected to be another busy peak season. Robust consumer demand, inventory replenishment and a myriad of supply chain bottlenecks have providers scrambling to meet the holiday-buying call.

On Tuesday, Amazon (NASDAQ: AMZN) said it would be adding 125,000 fulfillment and transportation workers. The online retail giant said it would pay $3,000 sign-on bonuses in select markets and that full-time hires would see comprehensive benefits. The average starting hourly rate is more than $18, with benefits compensation amounting to another $3.50 an hour.

Earlier in the month, the company said it was filling 40,000 corporate and tech roles.

Since the pandemic’s onset, Amazon has hired 450,000 employees in the U.S. Last September, the company launched a hiring campaign for 100,000 workers in the U.S. and Canada.

On Sept. 9, UPS (NYSE: UPS) announced plans to hire more than 100,000 workers for peak season. The permanent and temporary positions are for drivers, driver helpers, handlers and personal vehicle drivers.

UPS added a similar number of seasonal hires in 2020. On average, UPS retains roughly one-third of its seasonal package handlers on a permanent basis.

A day earlier, the U.S. Postal Service announced a hiring plan calling for more than 40,000 seasonal workers. The jobs included positions for mail carriers, handlers and drivers. Last year, the Postal Service hired more than 50,000 workers for the holidays.

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.